SPX: closely overbought

Last week was all about inflation data and market perception over the next Fed`s move. October inflation data were awaited with anticipation as one of the final puzzle pieces in answering the question whether the Fed will increase interest rates for one more time till the end of this year. Now the odds for such a move are quite low, while the market begins to switch its attention on whether the rate cuts might occur. This was the main reason behind the further push of the S&P 500 index to the level of 4.514, where it is finishing the week.

As per current charts, the S&P 500 reached overbought momentum. It is an indication that a short reversal might lay ahead in the week ahead. In this sense, the level of 4.450 might be tested, with a lower probability that the index might go significantly below this level.